Exam 15: Inventory Management

A bakery wants to determine how many trays of doughnuts it should prepare each day. Demand is normal with a mean of 5 trays and standard deviation of 1 tray. If the owner wants a service level of at least 95% how many trays should he prepare (round to the nearest whole tray)? Assume doughnuts have no salvage value after the day is complete.

(Multiple Choice)

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Question 141

Which of the following is not an assumption of the economic order quantity model shown below? Q* = $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

(Multiple Choice)

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Question 142

Demand for a product is relatively constant at five units per day. Lead time for this product is normally distributed with a mean of ten days and a standard deviation of three days. a. What reorder point provides a 50 percent service level? b. What reorder point provides a 90 percent service level? c. If the lead time standard deviation can be reduced from 3 days to 1, what reorder point now provides 90 percent service? How much is safety stock reduced by this change?

(Essay)

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Question 143

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately

(Multiple Choice)

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Question 144

Louisiana Specialty Foods can produce their famous meat pies at a rate of 1650 cases of 48 pies each per day. The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day. The cost of setup, cleanup, idle time in transition from other products to pies, etc., is $320. Annual holding costs are $11.50 per case. Assume 250 days per year. a. Determine the optimum production run. b. Determine the number of production runs per year. c. Determine maximum inventory. d. Determine total inventory-related (setup and carrying) costs per year.

(Essay)

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Question 145

A disadvantage of the fixed-period inventory system is that

(Multiple Choice)

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Question 146

When demand is constant and lead time is variable, safety stock computation requires three inputs: the value of Z, __________, and the standard deviation of lead time.

(Short Answer)

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Question 147

Which of the following statements about the basic EOQ model is False?

(Multiple Choice)

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Question 148

At the economic order quantity, holding costs are equal to product costs.

(True/False)

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Question 149

Which of the following statements regarding Amazon.com is False?

(Multiple Choice)

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Question 150

According to the global company profile, Amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations.

(True/False)

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Question 151

Which of the following is a function of inventory?

(Multiple Choice)

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Question 152

In the simple EOQ model, if annual demand were to increase, the EOQ would increase proportionately.

(True/False)

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Question 153

Which of the following is not one of the four main types of inventory?

(Multiple Choice)

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Question 154

One advantage of cycle counting is that it maintains accurate inventory records.

(True/False)

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Question 155

Showing 141 - 155 of 155

Which of the following is not an assumption of the economic order quantity model shown below? Q* = $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately

A disadvantage of the fixed-period inventory system is that

When demand is constant and lead time is variable, safety stock computation requires three inputs: the value of Z, __________, and the standard deviation of lead time.

Which of the following statements about the basic EOQ model is False?

At the economic order quantity, holding costs are equal to product costs.

Which of the following statements regarding Amazon.com is False?

According to the global company profile, Amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations.

Which of the following is a function of inventory?

In the simple EOQ model, if annual demand were to increase, the EOQ would increase proportionately.

Which of the following is not one of the four main types of inventory?

One advantage of cycle counting is that it maintains accurate inventory records.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Outsourcing as a Supply-Chain Strategy

Aggregate Planning

Material Requirements Planning MRP and ERP

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters

Exam 15: Inventory Management

Which of the following is not an assumption of the economic order quantity model shown below? Q* = 2⋅D⋅SH\sqrt { \frac { 2 \cdot D \cdot S } { H } }H2⋅D⋅S​​

A disadvantage of the fixed-period inventory system is that

When demand is constant and lead time is variable, safety stock computation requires three inputs: the value of Z, __________, and the standard deviation of lead time.

Which of the following statements about the basic EOQ model is False?

At the economic order quantity, holding costs are equal to product costs.

Which of the following statements regarding Amazon.com is False?

According to the global company profile, Amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations.

Which of the following is a function of inventory?

In the simple EOQ model, if annual demand were to increase, the EOQ would increase proportionately.

Which of the following is not one of the four main types of inventory?

One advantage of cycle counting is that it maintains accurate inventory records.

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Design of Goods and Services

Managing Quality

Statistical Process Control

Process Strategy

Capacity and Constraint Management

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Outsourcing as a Supply-Chain Strategy

Aggregate Planning

Material Requirements Planning MRP and ERP

Short-Term Scheduling

Just-In-Time and Lean Options

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Filters

Which of the following is not an assumption of the economic order quantity model shown below? Q* = $\sqrt { \frac { 2 \cdot D \cdot S } { H } }$